Tourist accommodation premises are accommodations which have been registered by the Commissioner under subsection 31C (1) Tourism Industry Act 1992.

The announcement added that the tax will be implemented utilising a system of cooperation between government and the businesses, and is done so to ‘enhance tourism experience for tourists’.

The tax returns will be used in the development of the tourist industry, mainly enhancing infrastructures and facilities, as well as tourism promotional activities and campaigns.

Premises which are registered with Ministry of Tourism and Culture as ‘homestay’ or ‘kampung stay’ will be exempted from the tax.

These premises must also be established and maintained by religious institutions, have less than 10 rooms and cannot be for commercial purposes.

In addition, accommodation premises operated by the Federal Government, State Government or statutory body used of training, educating and accommodation which are not for commercial purpose are also exempted.